iHeartMedia wins corporate lawsuit, after battling major debt…
Massive radio conglomerate iHeartMedia has long been struggling to stay afloat after saddling itself with billions in debt. Now, there’s a welcomed breather: iHeart scored a breakthrough in a corporate lawsuit over loan repayments, according to The San Antonio Express News.
Back in March, iHeartMedia was faced with a default notice from its senior creditors. The warning came after they decided to transfer 100,000,000 shares of Class B common stock in Clear Channel Outdoor Holdings to Broader Media LLC, another subsidiary.
The transfer happened on December 3rd of last year, and creditors claimed that this action was forbidden under the terms of the loan. In response, iHeartMedia challenged the allegations by filing a lawsuit against creditors in Bexar County State District Court.
On Tuesday, March 8th, iHeartMedia Inc responded against creditor allegations with the following statement:
”We believe our recent contribution of Clear Channel Outdoor Holdings, Inc. stock to our subsidiary Broader Media, LLC constituted a permitted investment under, and fully complied with, our financing agreements.”
”We strongly believe the notices of default issued by the lender group based on the contribution are invalid.”
The court granted iHeartMedia with a 14 day restraining order, which prevented further default notices from its creditors. That bought a little time, and delayed a number of seriously financial implosions including bankruptcy. This latest advancement in the case is a major win for the company and a massive weight of their shoulders…. for now.
(Image by Beth Cortez-Neavel, Creative Commons, Public Domain)